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Expert Consulting and Testimony

The energy markets have undergone considerable trauma as a result of exposed market manipulation, contract disputes, and now the ongoing process of a high volume of federal indictments and court trials. The issues related to the electricity and natural gas markets are both complex and diverse in nature; in order to understand the issues in court proceedings dealing with these markets one must have a deep and firsthand knowledge of the industry.

Gelber is involved in providing testimonial input to legislative and judiciary bodies with respect to the energy markets. The testimonials are provided at the request of both the governmental and private sectors and permit those involved to make thoughtful policy and lawmaking decisions.

Gelber focuses on the energy commodity and the physical markets; we understand all types of natural gas and energy transactions. We see the three most common types of litigation cases:

1. Fraud and Manipulation

Traders and managers are under federal indictment, or the threat of indictment for false reporting, wire fraud, violation of the Commodity Exchange Act, and other such activities.

We provide excellent insight into common industry practices, knowledge of complex transactions, and robust computer systems with ready access to a large array of historical information. Moreover, Gelber is known for our ability to educate lawyers, judges, juries, and other members and associates of the court and legal process.

1. Fraud and Manipulation 2. Contract Disputes

The natural gas market has created many types of complicated and sophisticated transactions. These are encumbered with industry jargon such as "trigger deals."

Nearly all gas transactions are guided by a Master Agreement followed by a series of Exhibits.

The industry has standards that companies may or may not adhere to regarding the two most important sections:

• Failure to Perform
• Force Majeure

The natural gas market has a history of contractual issues surrounding contract performance. Such terms are best efforts, interruptible, base load, firm, and ultra firm, are commonplace but poorly defined.

Many disputes can be resolved when parties are willing participants to mitigation. Often, however, disputes find resolution in a court of law. Gelber & Associates can help your case either in or out of court.

1. Fraud and Manipulation 2. Contract Disputes 3. Trader Improprieties

Traders have many avenues available to them to commit improprieties that force an organization into unacceptably high risk situations. The most common unethical activities are

• Broker kickbacks
• Futures allocation schemes
• Lavish gifts
• Broker credit cards
• Below-market merchandise sales from brokers to traders

All of the above are unethical, most of them go against company policies, and many of them are illegal. As the physical markets for energy converge with the financial markets, traders do things that are more and more complicated. Often, managers are not equipped to fully understand a trader’s activity. Moreover, the computer programs that are used to track traders and their trades may not do an effective job of monitoring financial exposure and trade disclosure.

Gelber & Associates can work with your corporate accounting firm and legal advisors or we can bring in our own staff of qualified accountants and lawyers - it usually takes a trader’s eye and ear to hunt down and document illegal trading.

1. Fraud and Manipulation 2. Contract Disputes 3. Trader Improprieties Recent Industry Engagements:

1. Litigation support

• Wasatch Energy Operation vs. NM&O Operating Company
• United States of America vs. Todd Geiger
• United States of America vs. Michelle Valencia
• Power Operators Inc. vs. Sprague Energy
• Swidler Berlin (Washington D.C.) Nitrogen Producers Study Group’s efforts natural gas market manipulation and activities
• Cotton Valley Compression, Gaither Petroleum, JMI Inc. vs. Reliant Energy Services Inc., Reliant Energy Inc., Reliant Resources, Inc.
• Williams Energy Marketing & Trading vs. Gulfmark Energy Marketing Inc.
• Utility Choice Electric vs. Centerpoint Energy Inc. and Texas Genco, LP
• Weirton Steel vs. ChevronTexaco
• Russel Gibaut vs. Duke Energy
• Sungard vs. Infinite Software of Texas et al
• Varco LP vs. NUS Consulting Group
• Unites States Commodity Futures Trading Commission vs. Paul Atla, Christopher McDonald, and Michael Whalen

• Testimony before the Missouri Public Service Commission regarding natural gas market activities and changes
• Testimony before the Arizona Corporation Commission regarding natural gas and electric power markets in relation to energy providers activities
• Testimony before the Federal Energy Regulatory Commission regarding natural gas storage reporting
• Testimony before the Louisiana Public Service Commission regarding the management of a forward natural gas procurement portfolio

• NiSource Corp acquisition of Perry trading, due diligence of trading portfolio and marked to market valuation
• Ritchie Capital acquisition of Concord Energy. Due-diligence of a natural gas trading and marketing company for proposed acquisition by a capital management and investment company.

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